Paper/Speech Details of Conference Program for the 19th NISPAcee Annual Conference Program Overview Fiscal Policy Author(s) Liudmila Nikolova St. Petersburg State Polytechnical University Saint Petersburg Russian Federation Radionova Yulia, Kozlovskaya E. Title Anti-crisis financial policy in Russia: Goals, methods and effectiveness. File Paper files are available only for conference participants, please login first. Presenter Abstract Financial crisis in Russia is characterized by several features. The main reason of it is an imbalance in a financial system, which started because of changes to market economy. These changes required to solve a big amount of problems, such as: an establishment of normative acts for new conditions of management, state reorganization after a breakdown of USSR, repayment of its debts, changing of economic structure and creation of new institutions, such as banking system, insurance, stock market and others. Prolong crisis at the period of restructurization has destroyed a social sphere of state activity. Overcoming the crisis provides an establishment of financial policy. The basis for it is a scientific conception of finance development, which determines ways of using finance methods for economic progress and the program of action that provide the achievement of goals. Priority directions are: strengthening of social protection, creations of new work places, increase of industrial and technological potential, decrease of administration pressure on business, improve of stability of a domestic financial system. As a part of strengthening of social protection and establishing of work places a special attention is given to co-financing of social programs, which are directed on a decrease of unemployment. For this purpose the government will spend about 80 billion rubles. It’s providing that more than 30 billion rubles will be transferred to pension funds. This has to solve a problem of demand stimulation, which provides an economic development. As a part of industrial and technological potential growth the financial policy is focused on increase of investment potential by changing tax and amortization policy. Realization of this ideas will cost more than 300 billion rubles, which will drop out of the budget. Government investments on support of high-tech industries of economy will be about 170 billion rubles. Special attention is focused on agrocultural sector by given the grants on interest payments for loans used for investment programs. One of the fiscal policy areas is a support of production of the goods that can replace import ones, first of all car industry. Social orientation is easy to see at the support of residential construction and at different programs for young families. For this aims government will spend more than 60 billion rubles. A lot of attention is paid to small businesses. Financing of this area will cost over 30 billion rubles. In total, Russian government and Central Bank reserved 10 trillion rubles on realization of all this ideas. A special role in overcoming the crisis should play tax, fiscal and custom policies. For supporting of business activity in economics and customer demand there is an aim to strength the tax policy. New methods of custom-tariff protection are devised. In order to improve the stability of the domestic financial system it’s provided: expanding of resource base and increase of liquidity in a banking system, considerable decrease in specifications of required reserves, placement of temporarily free budget funds on deposit in commercial banks, extension of credit by Bank of Russia and several other measures, helped to expand amount of credits from commercial banks. To realize all this methods Russian government is developing a control program, which will help to coordinate all methods and will support their implementation.
